NCC gives mixed signals about MTN’s multi-billion dollar fine

On December 3, 2015 shareholders were informed that MTN had received a formal letter dated December 2 from the Nigeria Communications Commission (the first letter) informing MTN that, after considering its request, the regulator had taken the decision to reduce the fine imposed on the MTN Nigerian business from the original N1.04 trillion (US$5.25 billion) (the original fine) to N674 billion, which had to be paid by December 31, 2015. The fine relates to the late disconnecting of 5.1 million MTN Nigerian subscribers in August and September 2015. This was a reduction of 35 per cent of the original fine.

Late on December 3, 2015, the day after receipt of the first letter, MTN received a further letter from the NCC dated December 3 (the second letter). The second letter, which was stated to supersede the first, informed MTN that the fine had actually been reduced by 25 per cent to N780 billion and not by 35 per cent to N674 billion, as was stated in the first letter. The payment date remained December 31, 2015.

Neither the first nor the second letter sets out any details on how the reduction was determined.

MTN said in a statement it is carefully considering both the first and second letters, and the executive chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian authorities before responding formally, as it is essential for MTN to follow due process to ensure the best outcome for the company, its stakeholders and the Nigerian authorities, and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before MTN arrives at a final decision.